Stock ETF



A security that tracks a particular set of equities, similar to an index. A stock ETF is traded just as a normal share of stock is traded on an exchange, but unlike a mutual fund it will have its price adjusted throughout the day rather than at market close. This type of ETF is usually made up of stocks in a similar industry, such as energy, but can cover an index of equities as well.


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A stock ETF allows an investor to gain exposure to a basket of equities without having to purchase individual shares. A stock ETF can be treated like a normal stock in that it can be shorted or purchased on margin. Like most ETFs, a stock ETF often carries a management fee or other type of expense, but this is typically lower than those found in a mutual fund.

  1. Exchange-Traded Fund (ETF)

    A security that tracks an index, a commodity or a basket of assets ...
  2. No-Fee ETF

    An exchange-traded fund (ETF) that a broker does not charge a ...
  3. Currency ETF

    Exchange-traded funds (ETFs) invested in a single currency or ...
  4. Index ETF

    Exchange-traded funds that follow a specific benchmark index ...
  5. Bond ETF

    A type of exchange-traded fund (ETF) that exclusively invests ...
  6. Exchange-Traded Mutual Funds (ETMF)

    Investopedia explains the definition of exchange-traded mutual ...
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